Spain's Santander Raises $3.57 Billion in Mexican IPO

Spain's Banco Santander SA (NYSE: SAN) held dual IPOs this morning for about 25% of the bank's Mexican unit, Grupo Financiero Santander Mexico SAB. de C.V. (NYSE: BSMX). The American Depositary Shares (ADS) went out at $12.18 and traded more than a dollar higher than the IPO price in the mid-afternoon (each ADS is equal to five ordinary shares).

Santander sold about 19% of its Mexican unit in Mexico and the other 6% in the U.S. The Spanish bank plans to use the proceeds from the IPO to bolster its capital position. Santander is the fourth largest bank in Mexico and the largest that is publicly traded. The IPO values Santander Mexico at about $16.45 billion.

Today's IPO is the largest in the U.S. financial sector since Santander raised $7.5 billion in the IPO of its Brazilian unit in 2009.

Santander Mexico ADSes are now trading at $13.26, up 8.9%. More than 123 million have traded hands so far today.